He described the sector as the nation’s most vibrant in the business community.

Mr Sherry’s comments came as the small business lobby said it was heartened it rated a mention in a speech by Prime Minister Julia Gillard, even if it didn’t entirely agree with her take on tax cuts.

In a wide-ranging speech in Queensland on Tuesday, Ms Gillard said a company tax rate cut from 30 to 29 per cent in the 2012-13 financial year would benefit small business.

But Council of Small Business Organisations of Australia executive director Peter Strong was not so sure. "I think it will only be good for small businesses that are incorporated. Two-thirds of them aren’t," he said.

"The cut is only 1 per cent so it is not very much." But, Mr Strong said he welcomed positive words from the PM.